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Hey, I'm having trouble with this textbook problem - if someone could provide the steps and solution it would be greatly appreciated. :) 2. Consider
Hey, I'm having trouble with this textbook problem - if someone could provide the steps and solution it would be greatly appreciated. :)
2. Consider a product market with a supply,r function Q: 2 g + ,3ng + HE, a demand function Qf = \"m + of, and a market equilibrium condition Q? = Qf.' where of and a? are mutually.r independent i.i.d. random variables, both with a mean of zero. You have a data set of (H, {'31-} in equilibrium. a. Show that F; and a: are correlated. b. Show that the OLE estimator for 1 is inconsistent
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